On March 20, 2025, we announced our restructuring actions for fiscal 2026, which include the reduction of approximately 10% of the Company’s global workforce, primarily in the Product ID segment, and the realignment of our underperforming MTEX operation in Portugal. As part of this initiative, we have cut approximately 70% of the MTEX product portfolio, phasing out low-volume, low-profit and developmental models in the nascent fabric printing market to focus more resources on much higher-margin products that capitalize on our supplies business. In addition, all MTEX sales, marketing and customer support functions have been integrated into our global teams to improve accountability and performance. We anticipate our restructuring actions to generate $3.0 million in annualized savings and expect to complete the planned actions by the second quarter of fiscal 2027.

As a result of the adoption and implementation of the above restructuring actions, as of January 31, 2026, we recognized total pre-tax restructuring charges of $1.3 million. Additional charges of $0.4 million were recognized in the first quarter of fiscal 2027,

reflecting the continued execution of the plan. The restructuring charges are comprised primarily of cash expenditures related to severance-related costs. Below is a summary of the restructuring costs and liabilities by type as of April 30, 2026:


(in thousands)	Severance and Employee Related Costs			Other			Total
Balance at February 1, 2025	$	—		$	—		$	—
Charges recognized in fiscal 2026		1,267			90			1,357
Cash payments in fiscal 2026		(1,023	)		(90	)		(1,113	)
Balance at January 31, 2026	$	244		$	—		$	244
Charges recognized in fiscal 2026		360			—			360
Cash payments in fiscal 2026		(484	)		—			(484	)
Balance at April 30, 2026	$	120		$	—		$	120

The following table summarizes restructuring costs included in the accompanying condensed consolidated statement of income (loss):


	Three Months Ended
(in thousands)	April 30, 2026		April 30, 2025
Cost of Revenue	$	360	$	340
Operating Expenses:
Selling & Marketing		—		98
General & Administrative		—		120
Total	$	360	$	558